Cell Genesys And Somatix To Merge

In a move that will establish a leading gene therapy company, CellGenesys and Somatix, both of the USA, have signed a definitive agreement to merge.

Somatix will become a wholly-owned subsidiary of Cell Genesys in a tax-free reorganization and stock-for-stock merger. Pending shareholder approval, Somatix stockholders will receive 0.385 shares of Cell Genesys stock for each share of Somatix stock, subject to adjustment in certain circumstances. Cell Genesys stockholders, who will retain their current share of stock, will own around 61% of the combined company.

The merger is expected to be completed in April, and the resulting firm will be located at existing Cell Genesys facilities in Foster City, California. Somatix' Alameda site will be closed as soon as is practical.